Meta adds more ads to Facebook Reels, plans revenue split with creators

Meta adds more ads to Facebook Reels, plans revenue split with creators

Facebook is making some much-needed changes to Reels, its competitor of TikTok.

  • In contrast to Instagram Reels, which began rolling out worldwide last year and included 30-second commercials, Facebook Reels’ new style will feature shorter advertisements.
  • The second-to-last reel of the Reel will not loop automatically; instead, there will be 4 to 10 seconds of skippable advertise “post-loop” after it has concluded. The Reel will restart after the ad has ended, and the platform is experimenting with skippable “post-loop” advertisements that play after a Reel has completed.
  • “Image carousel” advertisements are used in another Facebook Reels test. These horizontally scrolling ads will appear at the bottom of a Reels video.

Possibly the most crucial element: graceful creators will receive 55% of the proceeds from both of these novel ad styles, which is significant during a time when social networks are struggling to maintain creators on their site—and money speaks volumes.

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Will it be successful? Reels’ new commercials may shift consumer behavior to a small degree.

  • While some Reels, like those on TikTok, are intended to be seen numerous times, including an ad at the end might cause viewers to view another video rather than the same one again.
  • Although many social media users already engage with Reels less often than TikTok content, it should still be noted.
  • Facebook is in a risky situation. They need to create more advert space to make money, but if they do users might not remain on the site.

The major takeaways: Meta must strike a balance between user experience and profit, and this upgrade—not to mention the new Instagram ad placements—adds another wrinkle to that challenge.

  • A spokesperson for the company said it is tracking users’ sentiments both for advertising and overall commerciality. Time will tell if the increased ad load is enough of a pro from a financial standpoint to be worth possibly turning off users.

What are the new ad formats? 

  • The new ad types are classified into a few categories: Instagram In-profile advertising: Personal profile feeds will feature ads that are relevant to the specific profile as a user scrolls. Only public profiles belonging to adults will be included, and creators won’t initially be able to control which advertisers appear on their profiles.
  • Ads on the Instagram Explore page are:The Discover page, also known as the Explore tab, will now have sponsored images and videos in the main grid of photos and videos. These advertisements are bought through the same auction as all other advertising.
  • Multi-advertiser ad carousels on Instagram: After a user engages with an ad by clicking through the link or making a purchase, they will be served a carousel of related ads below the one they just viewed for brands and products that are similar in content. This is aimed at capturing people who are supposedly in the “shopping mindset.” Meta does not currently provide any control for advertisers to block or allow appearing alongside other specific businesses, but is relying on its machine learning to prevent duplicate ads in the carousel. There is also no separate reporting for this format for advertisers to see which ads they’ve appeared alongside.
  • Post-loop ads in Facebook Reels: Once a user finishes viewing a Reel the first time through, rather than starting the video again, a four-second-long ad will play instead.
  • Ad carousels at bottom of Facebook Reels: While watching a Reel, a carousel of ads will appear below the creator’s name and caption for the video from a single advertiser. Users will be able to click through the carousel of buttons to learn more about the brand or product from the video.

Integrating AR into in-feed ads and Stories: Taking a years-old page out of Snap’s playbook, Meta is now giving advertisers the ability to use augmented reality in their ads, like allowing users to pull up a 3D rendering of a product in their room using their phone’s camera.

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